US: Home Prices Coming Down In These Cities

The high home prices in tandem with high mortgage rates stopped many aspirant buyers in the US in the last many months. In a relief to them, home prices appear to have declined in April in a few major cities where the pandemic took the prices to the next level.

According to a mortgage data company ICE Mortgage, home prices started to come down in cities like Austin, Tampa, San Antonio, and other cities in Texas and Florida. The shift comes due to the markets recalibrating as the Home sellers and home builders are adding more listings with just a few Americans relocating there.

The home prices in Austin surged up to 70% between 2020 and 2022, while San Antonio rose 40% and Tampa rose 60%, according to ICE Mortgage data. The listings in 2020 to 2022 in Austin were 1400 while in May 2024, it went to 10,000!

The listings in San Antonio were 2600 and now it is 11,000. The same is the case with Tampa which had 3000 listings during 2022 and now has 15,000 listings.

The lack of affordable property insurance is also one of the reasons for homeowners to sell their homes. The average property insurance premiums in Florida and Texas were 11,000 and 4500 in 2023 while the national average is 2400.

The other cities that adjusted the home prices are Houston, Jacksonville, Nashville, and Salt Lake City.